District finance staff reported that a recent live auction for electric supply produced a three-year contract that raises supply-side costs by about $230,000 on the district's current load, while delivery charges from utility Ameren could still double and add as much as $800,000 more to the district's electric bill.

"In the end, the numbers aren't fantastic, but they're within your threshold that we approved at the last meeting," Dr. Mike Curry, the district's chief operational officer, said of the auction. He said the district accepted a three-year supply contract that represented the best offer available at the time.

Curry said natural gas prices showed a much smaller increase: "Only a 4% increase, and I jumped on that for 4 years and an additional $6,498 a year." He cautioned that the district's total electric cost would depend on separate delivery charges from Ameren, which are budgeted conservatively pending the utility's final figures.

The board and administration also discussed the district's planned solar projects and uncertainty about federal or regulatory incentives tied to those projects. Curry described a multi-party approval process that includes Ameren and the developer; if required infrastructure is not in place in time, incentives could be lost and project economics could change.

Why it matters: District staff told the board these energy cost swings are material to the FY2025–26 budget and could affect funds available for staffing and programs. Curry said the district is monitoring approval timelines and cautioned that some incentives could be at risk if project milestones are not met.

No formal action was taken on the solar projects during the meeting; the energy auction and contract acceptance had been handled previously by staff under delegated authority. Board members asked questions about federal policy timelines and the potential budget impact.

Key figures reported by the district: supply-side increase ~$230,000; natural gas increase ~4% (~$6,498/year); possible additional Ameren delivery charge increases up to ~$800,000, depending on final Ameren rates.